5 order-picking methods to boost your supply chain

Order preparation accounts for almost 60% of operating costs in traditional warehouses.

Indeed, companies have had to adapt their methods and tools to meet changing customer expectations and survive in a highly competitive environment.

Because order preparation has a considerable impact on a company's productivity and profitability, here you'll find 5 methods and tools to boost efficiency and improve your quality of service.

See all software Stock Management

What is order picking?

Order picking is the logistical operation of taking products from a storage area and putting them together, in response to a purchase order, in preparation for shipment to the customer.

It's a concept used mainly in the industrial sector (automotive, pharmaceuticals, etc.), but also in the commercial sector (supermarkets, e-commerce, etc.), with storage and distribution activities.

This operation is carried out by an order picker.

The order preparation stages

1. Picking: the collection of items from their storage location, following the customer's order and the generation of a picking order.
2. Sorting : identifying and assembling items for reconstituting orders and organizing packages.
3. Packing: packing units, parcels or pallets, to facilitate handling and transport operations.
4. Pre-shipment control: the order picker checks the weight of the completed unit and scans the label to guarantee shipment traceability.

💡Example of a complete order-picking cycle, from online customer order to order tracking:

The 5 key picking methods

Method ^no 1: Picking by item

This is one of the most common order-picking methods.

The process is quite simple: when an operator receives an order, he moves around the warehouse to collect all the items ordered. When he's finished, he starts again with another order.

☝️Cette works very well in small warehouses , but is less efficient for larger warehouses , because of the time lost in travel compared to other methods.

Method ^no 2: Group or batch picking

This method is based on the fact that the same person prepares several orders at the same time. In this way, the operator saves time: if he finds the same item in several orders, he directly picks the total quantity, thus saving time.

☝️En In the case of massive orders, software groups order items by reference. A sorting operation is then necessary.

Method ^no 3: Zone picking

Here, orders are organized in well-defined zones , and one or more operators are responsible for picking them (but only in each zone).

It's the same principle as batch picking, except that order items are grouped and sorted according to storage zone, not product type.

☝️S There are items from several zones, so once one zone is finished, workers move on to the next.

Method ^no 4: Wave picking

Also known as Wave Picking, this process combines the use of 2 well-known methods:

Batch picking
Batch items are grouped according to :

• their shipping priority,
• transport and/or customer route,
• number of orders,
• their composition,
• and operator workload.

Zone picking
To avoid overcrowding or excessive traffic in the warehouse aisles, order groups are assigned to pickers according to the location of the goods.

Method ^no. 5: Picking by combined order system

In warehouses equipped with the most advanced systems, picking is often done by combination.

The process is relatively straightforward: the order is placed by zone, and within the same zone, the operator carries out batch picking, meaning that several batches of orders are picked at the same time in the same zone.

BONUS - Our 4 tips for improving order picking

1- Get organized

• You manage and monitor your stocks scrupulously , so you know your capacity and can anticipate demand according to your forecasts.
  
  
• Stock locations are organized according to order frequency. For example, best-sellers are stored in the closest and most accessible locations. This practice is called slotting. What's more, you improve your warehouse management!
  
  
• Your teams have areas dedicated to order picking, delimited, tidy, secure and close to storage areas and the necessary tools.
  
  
• Order-picking processes are clear and communicated to all stakeholders, and ideally mapped, facilitating collaboration as well as the integration and training of future employees.
  
  
• You are cautious in planning order processing and communicating delivery dates to customers, to avoid errors caused by rushed order preparation.

2 - Choose the right picking method

By acting on two levers of logistical picking, i.e. limiting movements and facilitating handling, you :

• not only gain in order-picking time,
• but also preserve the health of your workforce.

Choosing the right picking method is essential. You can choose between the 5 methods presented above, and complement them with different picking and item selection techniques.

Item selection methods

• FIFO (first in first out) selection , to avoid holding stock whose references may change and become obsolete;
• FEFO (first expired first out) selection , to dispose of perishable goods according to sell-by dates.

Order-picking methods

• Pick then pack : this involves picking several items, then routing them to a sorting and packaging area at the end of the line.

  You handle the picking of several orders at the same time (mass picking or wave picking);

• Pick and pack: preparation is carried out order by order, when orders are few in number.

  Thanks to a list of order items, a parcel is routed to several successive picking zones, where it is completed each time by different pickers. This requires dynamic conveyor systems linked to the IT system;

• Pick-to-belt : a conveyor transports products to the sorting area, for large or bulky orders.

☝️ If several operators are working on different items belonging to the same order, there are 2 possibilities:

• either they take it in turns to complete the box, in which case we speak of successive picking;
• or they pick the items at the same time and send them to a common area for packing, in which case the preparation is processed simultaneously.

3 - Choose the right guidance mode

The picker is assisted in his picking operations by various guidance modes , such as :

• The label list for information on :
  • order of priority,
  • the location of picks to be made,
  • type of product and packaging,
  • customer information,
  • destination, if required (loading bay within the warehouse);
    
    
• The mobile digital terminal, equipped with a scanner and linked to the warehouse system, to obtain information on the picking address and package quantity, and update data in real time;
  
  
• Radio terminal with headset (pick by voice or voice picking) to receive instructions hands-free, and validate steps via a microphone;
  
  
• Pick by light or put to light: digital displays combined with indicator lights to show the location of products to be selected; for example: Green light: the product is available. Display shows 2: 2 items left, etc.
  
  
• The order picking cart with a weight or light control device, to ensure that items are placed in the right place and in the right number.

☝️ The terminal can often read barcodes or RFID (radio frequency identification) tags.

4 - Use the right order-picking tools

For automated inventory management connected to your accounting, e-commerce and CRM software, there are software packages that are indispensable in an omnichannel distribution strategy.

Their advantages include the ability to manage and track :

• merchandise movements, inbound and outbound,
• stock updates and automatic replenishment operations,
• creation of product data sheets and barcodes,
• setting up a stock alert system to avoid stock-outs,
• remote management of several warehouses, etc.

Selection of order-picking software :

See all software Stock Management

Order picking in brief

The major challenges of order preparation are :

• Inventory management 📦
  • avoid errors leading to stock discrepancies (bye bye overstocking),
  • reduce costs linked to logistics operations,
  • save storage space,

• Customer satisfaction 😄
  • fewer errors in parcel composition and addresses,
  • fewer lost parcels thanks to goods traceability,
  • good condition of goods;

• Quality and safety for consumers and employees ⛑
  • compliance with hygiene and safety rules (separation of toxic and food preparation, etc.) ;
  • accident risk prevention (workstation ergonomics, no heavy loads at height, etc.).